Mumbai, March 19: Your home loans, car loans and personal loans are going to get expensive. But the good news is, not just yet.
Inflation numbers racing past the target set for March by the Reserve Bank of India and robust IIP figures indicating an upturn in the economy
compelled the Reserve Bank of India to hike the repo rate (the rate at which the Reserve Bank of India lends to banks) by 25 basis points from 4.7 per cent to five per cent on Friday evening. The reverse repo rate (the rate at which the Reserve Bank of India borrows from the banks) has also been hiked by 25 basis points from 3.25 per cent to 3.5 per cent. It said these measures would anchor inflationary expectations and contain inflation going forward. It said credit expansion would not be affected as liquidity in the banking system would remain adequate.
Age Correspondent
